News Summary

Tesla has introduced the Model 3 Premium Rear-Wheel Drive (RWD) variant in Canada at a groundbreaking price of $39,490 CAD, approximately $29,000 USD. This marks a significant price reduction compared to the US market, enabled by Tesla’s shift to sourcing from its Gigafactory in Shanghai, China. This strategic move allows Tesla to benefit from Canada’s 6.1% most-favored-nation tariff rate on Chinese-built electric vehicles under a new EV import quota. The Shanghai-made model features an LFP (Lithium Iron Phosphate) battery, allowing daily full charges without degradation, catering especially to urban drivers. Despite the vehicle not qualifying for the federal $5,000 iZEV rebate, provincial incentives in Manitoba, Quebec, and the Yukon can still be applied. This competitive pricing strategy comes as Tesla anticipates the entry of Chinese EV makers like BYD and Xiaomi into the Canadian market later this year.